A government oil company is having trouble with the private refineries and transporters to whom it delegates important stages of production. It decides to become more active along the entire supply chain from locating deposits to retailing the fuel to consumers. Which of the following does it intend to achieve?
A)outsourcing
B)economies of scale
C)increase inputs
D)advanced production technology
E)vertical integration

Question

Quizplus · Accepted Answer

The government oil company intends to achieve vertical integration by becoming more active along the entire supply chain, from locating deposits to retailing fuel to consumers. Vertical integration involves a company expanding by taking on activities that are either upstream or downstream from its core business, allowing it to control more stages of the supply chain and potentially improve efficiency and profitability.

A Government Oil Company Is Having Trouble with the Private